Saturday, June 07, 2008

Technical Analysis On The S&P



Above is a weekly chart of SPY(S&P) along with slow stochastics and the on balance volume indicator.

Let's first start with the weekly bearish engulfment that took place 2 weeks ago. That was the first bearish sign that stocks would move lower. During that week the trendline was also broken confirming that a change of trend is taking place from up to down.

Now we see the stochastics have crossed and are on a sell signal. Notice how On balance volume was showing bearish divergence at the highs which was another warning sign that stocks were about to head lower.

Nothing works 100% of the time but experience has taught me that if I follow signals, I'll make money in the long run and my signals are all pointing down. I am bearish on stocks.

3 comments:

frank said...

Kevin- are you going to buy GLD on a break of 910?

Thanks

moo said...

we got a Hindenburg Omen observation Friday, June 6th. What this means is we are now on the clock for a confirming observation. Should we get a second observation within the next 36 days, it means there is a much higher than normal probability that we will get a major stock market decline over the next 120 days, with a 25 percent shot at a full blown stock market crash. 120 days takes us into the dreaded September/October period.

Kevin said...

Not sure Frank...If I do I will post my entry on this blog.

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites